Customer Centric Solutions for Safe Reliable Grid and

Customer Centric Solutions for Safe, Reliable Grid and Integration of Renewable Energy Sources Arun Vedhathiri, Director, Project Delivery, National Grid April 20, 2018, Energy 21 Symposium, Syracuse, NY.

In the U. S. , our focus is on four key areas DG AND STORAGE Equitable access to clean generation; resiliency and optimization couple with storage solutions for greater value CLEAN TRANSPORTATION Developing an infrastructure to facilitate the expansion of vehicles and fleets with electricity and natural gas GRID MODERNIZATION Advancing and integrating technologies to enable a more efficient and effective grid to support the new customer needs NEXT GEN EE, DR AND NWAs Enabling the value of distributed resources to help reduce electricity usage in constrained areas 2

Clean Energy Goals 80% by 2050 NY, MA, RI: CO 2 Reduction Targets (1990 Baseline) Near Term Deeper Energy Efficiency Grid Modernization Natural Gas Infrastructure Renewable Integration Electrification of Transportation Mid Term 50% CO 2 Reduction by 2030 Long Term De-Carbonized Economy 3

Clean Energy Transition @ National Grid US & UK Solar interconnections greater than new gas connections for last 2 years $100 Mil. investment in Sunrun, largest US residential solar firm Wind Deepwater Wind’s Block Island Wind Farm to the grid - first offshore wind installation in the US. Biomass Newtown Creek Renewable Gas Project, Biogas from organic waste ~ Heat 5200 Homes Storage 8 grid scale electric storage projects underway in NY, MA and RI service territories in 2018 In UK >50% of energy delivered in summer of 2017 came from low carbon sources 4

Promoting DERs in NY ¾ Hosting Capacity and Lidar data for DER developers to enable locating and sizing of systems ¾ LSRV locations and capacity needs for higher compensation for DERs ¾ Distributed Services Platform to enable transactions for DERs and earn for various grid services 53 Locational System Relief Values (LSRV) Areas 5

Volt Var Optimization & Conservation Voltage Reduction ¾ VVO and CVR are active techniques to optimize voltage at distribution feeders for following benefits: Upgrades to Station LTC, Station Voltage Regulators, Station Capacitor Banks, Distribution Capacitors, Distribution Regulators, Line Voltage Monitors and AMI ¾ Reduce Distribution Losses ¾ Lower Customer Consumption ¾ Optimize Feeder Power factor ¾ Maximize equipment operating life ¾ Maintain ANSI Voltage Range ¾ Support/utilize DER installations ¾ Minimize PQ issues (Flicker, Load Tripping, etc. ) 6

Non Wire Alternatives (NWA) Kenmore, NY ¾ Non Wire Alternatives (NWA) and Non Pipe Alternatives (NPA) following REV strategy ¾ Summer Peak Load Problem in Kenmore NY ¾ Traditional Wire Solution – Add capacity at substation ¾ NWA Solution: 16 Additional NWA Solicitations to date ¾ Demand Response from Direct Load Control of AC units ¾ 2 MW Battery Storage 7

NY REV Projects - Electric Fruit Belt Solar Clifton Park DR DSP - Distributed Services Platform Community Microgrid Utility owned Roof Top solar for Low and Moderate Income (LMI) community AMI enabled customer portal, behavioral Demand Response Transactive system to compensate Distributed Energy Resources (DER) for grid and societal benefits Resiliency from storm hardened power delivery with local DER for critical and essential services in Potsdam, NY Grid benefits of aggregating solar VVO - Volt Var Optimization for grid efficiency 8

2018 Customer Offerings in DER Residential Solar Marketplace Connected Solutions & Marketplace Online calculators and e-commerce resource to compare solar proposals and financial options Rebates for smart thermostats & other connected smart devices Electric Vehicles Initiative LED Street Lights and Smart City Infrastructure Residential Time of Dimmable LED Use (TOU) rate, street lights consumer education Citywide Io. T mesh network, connected Direct Load Control Expand charging devices and (DLC) for Demand network at sensors for DER 60+ Solar providers Response (DR) workplaces & assets apartments 9